in ch 13, tired of paying? they raised amount AGAIN!

[southerncomfort]

The more I read...the more worried I get. We're current on our mortgage and car payments. Have about $90k in unsecured debt. Is it possible that our payments could be that high...just can't see how we can afford it. Are most people behind on mortgages and car payments? Would be interested to know. Thanks.

I was current on my mortgage and car payments and had a bit more unsecured debt than you do. The trustee will deduct the mortgage and car payments and outher allowable living expenses and then whatever isleft over goes to the trustee.

[woeisme]

inajam, we pay $1100 a month on 90K of unsecured debt. It all depends on your morgage payments (ours are pretty low, $700 per month including the insurance and taxes) car payments (we own our two beater cars outright, probably a mistake, should have got a car to make it through the BK but hindsight is 20/20) cost of living in your area (ours is reasonable, midwest, not on a coast), number of people in your household(3), etc. and of course your income. (We make about 90K a year gross, net about 5K a month). We also are allowed to pay $375/month to our student loan co. outside the plan, which was taken into consideration, as well as childcare costs, a chronic health condition of my husband's that requires several expensive prescriptions, and so on. We are not paying our morgage in the plan, or any vehicles, or that student loan, so it's all going to really vary depending on your situation. Run through a sample means test to give you a ballpark idea of what you might be paying back so you stop worrying about it so much. Anyhow, it always seems like a lot no matter what you pay, but you have to think about how much it would cost to pay it off at current interest rates, etc., that even 100% payback plans are sometimes a good deal.

[EveryDayAdam]

This is so confusing. If I make my credit card payments they will total 1200 a month and be paid off in 10 years. (that's at the current interest rate & all payments on time) The attorney I talked with said my payment would range between 200 and 300 per month for 5 yrs if I file 13. I look at the payments people on here are making and I'm shocked. Is this based on your debt or your ability to pay the debt.
I forgot to tell the first attny about the start up money owed to me by my LLC. Even thought the LLC doesn't have the ability to pay me back right now I'm guessing the trustee will consider that an asset and add it to what I can pay to my creditors. Does this sound right?
If my payment was to go over 500 I would be forced to file 7 and lose the business and the house. This is so scarry. If I had enough assest to cover the debt I would sell and pay them off.

Larry,

Your payment is based entirely on your disposable income: Your income minus your necessary expenses. Everything else goes to the chapter 13 trustee to pay your creditors. it has nothing to do with how much unsecured debt you have. Your secured and priority debts could drive the payment up if they won't be paid entirely through the BK...

Other than that, you could owe $500,000 and have a payment of only $300/mo. It really all depends on the lawyer. In a BK, the lawyer is the one thing you don't want to skimp on. I paid $2550 for my BK 13 lawyer, but he has saved me tens of thousands of dollars in payments over the course of my 13...Other less-expensive lawyers I talked to put my payment at about $900/mo. My payment with this lawyer is only $200/mo. By choosing this guy, who was about $1000 more than the cheaper guy, I saved $42,000 in payments over 60 months...he sat there and started listing off expenses I had no idea I could deduct, and put them down. The cheaper lawyers just took what I put on their questionnaires and didn't offer any things I might have missed.

Charitable contributions, cable TV, travel to see my family in PA, 401k, health insurance, my gym membership, dry cleaning, recreation expenses, etc. All added up, bit-by-bit.

Of course, what you can get away with depends on the trustee and the court...I think I had it pretty lenient in both cases.

[larryg]

Everyday,
Thanks, I am going to see a couple more attnys before filing.

[Needing Help]

I mirror the question asked above. WHAT (besides a change in income) CONSTITUTES AN INCREASE IN PAYMENT? I am about to file a 13, and have an understanding that once your plan is confirmed, that's it.

If you are already giving all your disposable income, how can the plan be raised?

[sophie]

That is my question as well. Once you are confirmed, unless there is a change in income, how can your payment go up???

[MajorMike]

Papa, we're paying $1800 a month. It's been raised 3 times. I'm still grateful for the chance to get our financial life in order and would no way consider quitting now.

You really need to reconsider, the ramifications of what you want to do are enormous.

why is it getting raised???

[MajorMike]

Our state does not allow us to pay less then 5% to unsecured creditors. If we didn't have that much to fund the plan, we couldn't do it.

[cubfan300]

Payment Increase

Our mortgage is being paid thru the Trustee and in the year and a half that we have been in the plan, our ARM increased 3 times. Now, I got a letter last week from the mortgage holder that says our payment is decreasing for the next 6 months. What are the odds that my payment to the Trustee will decrease? ZERO. That is because I am not 100% payment to my unsecureds. So now after having a plan confirmed, having to continue to scrape up money every month that we supposedly didn't have because all of our disposable income was supposed to have been figured into the original payment amount, I guarantee we will not be making a lower payment next month.
It really sux because every six months we would get the letter from the Trustee stating that our payment was going to increase due to the ARM, and I am thinking to myself, "Why isn't this frozen? I am not making any more money than I was six months ago!:.

We will see.

[MajorMike]

Note to self..NEVER GET AN ARM!!!